Market Matters Blog

MINNEAPOLIS (DTN) -- The DTN average price for domestic distillers dried grains (DDG) from 34 locations reporting for the week ended Oct. 13 was $252 per ton, down $4 on average versus one week ago. DDG supplies are more readily available as production increases, adding to the lower prices. USGC noted that over the past two weeks, data from the EIA shows ethanol-- and therefore DDGS -- production has increased 9% from its maintenance-season low.

Also adding pressure to DDGS values are the navigation issues on the Mississippi River, pushing more product into the interior market. Latest update, Oct. 13, from Tom Russell, RMG, noted numerous barge groundings over the past weeks, the rivers are open, and traffic is moving slowly under 35% reduction in tow sizes and 25% reduction in barge draft restrictions. "Approximately 2,000 barge loads of grain were caught behind the closures. These barges have started to be delivered into New Orleans," added Russell.

The Energy Information Administration (EIA) Wednesday noted domestic ethanol production moved higher for a second week through Oct. 7. Ethanol production in the U.S. jumped 43,000 barrels per day (bpd) or 4.8% to a four-week high 932,000 bpd last week, down 9.7% from the same time in 2021. The four-week average production at 894,000 bpd was 68,000 bpd lower than the corresponding four weeks last year. Midwest ethanol production also continued higher for the second week, up 41,000 bpd to 881,000 bpd.

Based on the average of prices collected by DTN, the value of DDG relative to corn for the week ended Oct. 13 was 1.01%. The value of DDG relative to soybean meal was 60.22%, and the cost per unit of protein for DDG was $9.33 compared to the cost per unit of protein for soybean meal at $8.81.

In its weekly DDGS export update, the U.S. Grains Council said: "On the export market, Barge CIF NOLA prices are sharply lower as the logistics hurdles ease. October barge rates fell $12 metric ton (mt) this week while November and December rates pulled back $2 to $3/mt. FOB NOLA offers are steady/$3 higher this week at $350/mt for spot shipment. Offers for 40-foot containers to Asia are mixed with some routes quoted at steady with last week while others are up $5 to $11/mt. The average offer for containerized DDGS to Southeast Asia hit $390/mt this week."

NOTE: All prices listed below can change at any time and are subject to confirmation from seller.

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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